Top 10 Cities for Growth in 2024: Southern California Dominates the List

California Dreamin’: Southern California Metros Among Top 10 Cities for Growth in 2024

A new forecast from Realtor.com has identified the top 10 cities poised for strong growth in home sales and listing prices in 2024, and five Southern California metros have made the list. While Toledo, Ohio, claimed the top spot, cities like Oxnard, San Diego, Riverside, Bakersfield, and Los Angeles are expected to see double-digit sales growth next year.

Despite the high home prices in California, especially in cities like Los Angeles with a median home price of $1.15 million, Realtor.com predicts that sales will improve by 9.2% and prices will increase by 3.5% in the City of Angels. In Oxnard, sales are forecasted to improve by 18% with a 3.3% increase in prices.

Chief Economist Danielle Hale noted that as affordability improves, homebuyers are still looking for markets where they can find lower prices. Even in the more expensive markets like Los Angeles, double-digit sales growth is expected as sales rebound from historic lows, aided by expected softer mortgage rates.

The forecast comes at a time when California has seen a net loss in domestic migration, but Realtor.com sees a big opportunity for prospective buyers in 2024, especially if borrowing costs were to soften. The five California markets on the list are projected to outperform the state as a whole next year, with sales expected to be 20%-35% lower than pre-pandemic levels in 2017-2019.

Overall, the outlook for Southern California metros in 2024 is positive, with the potential for significant growth in both sales and listing prices. As the housing market continues to evolve, these cities could be hot spots for homebuyers looking to capitalize on the rebounding market.